COMMODITY CREDIT CORPORATION
The Commodity Credit Corporation (CCC) is a federal agency that was established to stabilize and protect farm income and prices; to assist in
the maintenance of balanced and sufficient sup-
plies of useful or serviceable agricultural goods,
especially articles of merchandise movable in
trade; and to promote the orderly distribution of
such products. It was organized on October 17,
1933, pursuant to an EXECUTIVE ORDER, as an
agency of the United States.
From October 17, 1933, to July 1, 1939, the
CCC was managed and operated in close affilia-
tion with the Reconstruction Finance Corpora-
tion. On July 1, 1939, it was transferred to the
AGRICULTURE DEPARTMENT under a presiden-
tial REORGANIZATION PLAN. Adoption by Con-
gress of the Commodity Credit Corporation
Charter Act on June 29, 1948, established the
CCC as an agency and instrumentality of the
United States under a permanent federal charter.
The CCC is managed by a board of directors
and is subject to the general supervision and
direction of the secretary of agriculture, who is
an ex officio director and chairperson of the
board. The board consists of seven members (in
addition to the secretary of agriculture) who are
appointed by the president of the United States
by and with the advice and consent of the Sen-
ate.
In carrying out its principal operations the
CCC utilizes the personnel and facilities of the
Farm Service Agency (FSA) and, in certain for-
eign trade operations, the Foreign Agricultural
Service.A commodity office in Kansas City,Mis-
souri, has specific responsibilities concerned
with the disposal (through donation, sale, or
transfer) of designated commodities and prod-
ucts held by the Commodity Credit Corpora-
tion.
Commodity Stabilization
The CCC administers commodity loan pro-
grams, which are part of the “price support” sys-
tem that has dominated U.S. agriculture since
the 1930s. Farmers who agree to limit their pro-
duction of specially designated crops can sell
them to the CCC or borrow money at support
prices. In 2003, the CCC managed loan programs
for wheat, corn, rice, grain sorghum, barley, oats, oilseeds, tobacco, peanuts, cotton, and
sugar.
Commodities acquired under the stabilization
program are disposed of through domestic
and export sales, transfers to other government
agencies, and donations for domestic and foreign
welfare use. The CCC is also authorized to
exchange surplus agricultural commodities
acquired by the CCC for strategic and other
materials and services produced abroad.
Support Programs
Under Public Law 480, the Agricultural
Trade Development and Assistance Act of 1954,
as amended (7 U.S.C.A. 1691 et seq.), the CCC
carries out other assigned activities. Along with
providing domestic assistance to schools, hospitals,
and nonprofit organizations, major emphasis
is also directed toward meeting the needs of
developing nations. Under the Food for Peace
Act of 1966, which further amends the Agricultural
Trade Act of 1954, agricultural commodities
are procured and exported to combat
hunger and malnutrition and to encourage economic
improvement in developing countries.
The CCC is also involved in environmental
issues. In 2000, the Agriculture Department
implemented a two-year, $300 million incentive
program designed to encourage increased production
of biofuels (environmentally-friendly
fuels) such as ethanol and soy-based biodiesel.
As a result, the Commodity Credit Corporation
provided cash incentives to bioenergy producers
who increase their purchase of eligible agricultural
commodities to expand production of
ethanol, biodiesel, and other biofuels. Eligible
commodities include barley, corn, grain
sorghum, oats, rice, wheat, soybeans, and many
seed crops.
FURTHER READINGS
Commodity Credit Corporation. Available online at
(accessed May 29,
2003).
United States Department of Agriculture. Available online at
(accessed May 29, 2003).
CROSS-REFERENCES
Agricultural Law; Agriculture Subsidies.
